In a dynamic shift within Romania’s commercial real estate landscape, regional cities are emerging as prominent players in office leasing activities, with Cluj-Napoca spearheading the charge. A recent report by Fortrim Trusted Advisors sheds light on the evolving trends, underscoring the significance of regional markets beyond the capital city of Bucharest.
The report reveals that office leasing in regional cities accounted for a substantial portion of the market, amounting to 37,441 square meters in 2023. This figure translates to approximately 18% of the office leasing activity observed in Bucharest during the same period. Notably, Cluj-Napoca stood out as the frontrunner among regional markets, securing a commanding share of 33% of the total office leasing deals closed. Timișoara and Iași followed closely in this ranking, signaling a distributed growth pattern across key regional centers.
Nicolae Ciobanu, Managing Partner – Head of Advisory at Fortim Trusted Advisors, remarked on the recent surge in lease transactions for office spaces in Cluj-Napoca. He highlighted an increased demand for well-equipped premises capable of facilitating swift occupancy. However, despite the uptick in demand, the supply of such spaces remains constrained, presenting opportunities for further development and investment in the region.
The influence of the Information Technology and Communication (IT&C) sector looms large in driving leasing activity, contributing to over 60% of the total leasing volume in regional cities. This underscores the sector’s pivotal role in shaping the demand for modern office spaces and driving market dynamics.
Moreover, office vacancy rates in regional cities were reported to be lower compared to Bucharest, reflecting a strategic approach to market development. Office parks are undergoing gradual expansion, with new buildings added periodically to meet evolving demand. However, the timeline for project completion remains contingent upon market demand and economic conditions. Several projects in Cluj-Napoca were postponed, signaling the sensitivity of development plans to market fluctuations.
Looking ahead, stakeholders emphasize the importance of strategic development planning and market responsiveness to sustain the growth momentum of regional office markets. With ongoing projects slated for completion in the coming years, the outlook for regional office leasing remains promising, contingent upon market demand and economic conditions.
As Romania’s office market continues to evolve, regional cities like Cluj-Napoca are poised to play a pivotal role in driving innovation, economic growth, and investment opportunities. By capitalizing on emerging trends and addressing supply-demand dynamics, stakeholders can foster a resilient office ecosystem across the country.
